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Home My WebLink About1985-10-22; City Council; 8376; Support for California Senate Resolution 30'J 0 LU ~ a: Cl.. Cl.. < z 0 ~ .., 6 z ::::, 8 Cl~F CARLSBAD -AGENO;,.-,ILL AB#_ ..... [3.;:;..~ DILE; MTG. 10-22 -85 DEPT. C.M. CITY COUNCIL SUPPORT FOR CALIFORNIA SENATE RESOLUTION 30 DEPT.HO, __ c1Tv ArrvVFA CITYMGR.~ RECOMMENDED ACTION: Authorize a letter supporting California Senate Resolution 30 be sent to local legislators. BACKGROUND: Mayor Casler has recieved a letter dated September 26, 1985 from David Roberti, Chairman of the California Senate Rules Committee urging the City's support on Resolution 30 which petitions the President and Congress to retain the deductibility of state and local taxes in any revision of federal income tax law which is enacted. The League of California Cities has also taken a position to retain the deductibility of state and local taxes. FISCAL IMPACT: N O N E EXHIBITS: 1. Letter dated September 26, 1985 from David Roberti, Chairman -California Senate Rules Committee 2. California Senate Resuolution 30 I Cc:1lifornia Legislature Senate Rules Comm'ittee September 26, 1985 DAVID ROBERTI Chairman The Honorable Mary H. Casler Mayor, City of Carlsbad City Hall Carlsbad, CA 92008 Dear Mayor Casler: MF"ABERS WILLIAM A. CRAVEN VICE CHAIRMAN JOHN T. DOOLITTLE HENRY J. MELLO NICHOLAS C. PETRIS I respectfully request your careful review of California Senate Resolution 30 which petitions the President and Congress to retain the deductibility of state and local taxes in any revision of federal income tax law which is enacted. I urge you to consider sending a letter or resolution on this issue which will ultimately affect all citizens and all levels of government services. We are in firm support of tax reform which creates fairness and simplifies the codes. However, our opposition to the elimination of deductibility for state and local taxes is of such urgency that it required a formal resolution to demonstrate our commitment to this long-standing principle of federalism. We are opposed to a "tax upon a tax" which will inequitably burden middle income taxpayers and perhaps fuel a taxpayer revolt to reduce state and local taxes if no longer deductible from the taxpayer's federal tax bill. The Senate passed SJR 30 on a strong bi-partisan vote (25 to 3). The Assembly took action on SJR 30 on September 11, 1985, passing it by a vote of 46 to 19. The Members of the California State Legislature are prepared to work with the Administration and Congress on tax reform which broadens the tax base without eliminating the deductibility of state and local taxes. Sincerely,----~ ~e:l • DAVID ROBERTI DR:CMjm STATE CAPITOL • ROOM 2209 • SACRAMENTO, CALIFORNIA 95814 • (916) 445-0924 'lV LllLL NIJMB.l::H: SJR JO SESSICN: 1985-1986 - PASSED THE ASSEMBLY SEPTEMBER 11, 1985 PASSED THE SENATE JULY 5, 1985 AMENDED IN SENATE JUNE 24, 1985 Intrcxluced by Senator Roberti JUNE 3, 1985 SESSICN: 1985-1986 EXHIBIT 2 Senate Joint Fesolution No. 30 F.elative to federal incare taxation. SESSICN: 1985-1986 AtTl'HOR: Senator Roberti I.J.Sr AMENDED DATE: JUNE 24, 1985 LEGISLATIVE COONSEL'S DIGEST SJR 30, Rd::>erti. Fede.ral incare taxation. This measure ~ld nerot'ialize the President and Ccngress of the United States to retain the deductibility of state and local taxes in any revision of federal inccrne tax law which is enacted. SESSIOO: 1985-1986 WHERF.N;, The President of the United States has proposed a fede.ral incane tax reform plan to prarote 'fairness, sinplicity, and grc:Mth'; and ~, The President's plan for tax refonn would eliminate the deduction for state and local taxes paid by individuals; and MJEREAS, The elimination of the deduction for state and local taxes would be an unfair tax upon a tax an:i, therefore, would constitute double taxation; and WHERF.J\S, Seventy-five years ago, the simple concept of state and local tax deductibility was wilt into the federal incare tax law in explicit recognition of the principle of federalism; and WHERFAS, '1'1e Tenth Amendment of ,:he United States Constitution reserves to the states and the people J?C)W"'..rs not expressly delegated to the federal gove.rrnrent; aoo WHERFAS, The elimination of the deduction for state and local taxes would impose a disproportionate tax burden on middle-incane taxpayers; and WHEREAS, The citizens of the State of Califomia would pay approximately $3.8 billion in higher taxes under this provision of the President's proposal; and WHEREAS, The federal gO'rernrent in recent years has shifted major responsibilities to state and local governnents in the spirit of federalism; and WHERFAS, The abolition of the deduction for state and local taxes will se.rioosly inpair the ability of state and local goverments to discharge these new responsibilities; ncM, therefore, be it Resolved, by the Senate and the Assanbly of the Stat.e of California, jointly, '!bat the LE:!gislature of the State of California narorializes the President and the Congress of the United States to retain the deductibility of state and local taxes in any revision of federal incare tax law which is enacted; and be it further Resolved, That the Secretary of the Senate transmit copies of this resolution to the President and Vice President of the United States, to the 8peaker of thP. Hoose of RepresentatiVC?s, and to each Senator and RP.presentative fran California in the Congress of the United States.